FORCES DRIVING E-COMMERCE
The speed at which the web has brought e-commerce to the average person is astounding. In August 1995, there were 18 million internet users in the U.S and Canada. By April 1999 that number had skyrocketed to 92 million of these 60 percent were online shoppers.
Consequently new e-commerce sites are being developed and launched very rapidly. Given the downturn in the stock market fortunes of many e-commerce companies in 2000, the casual observer might be prompted to wonder why business continue to feel that a web presence is vital.
Despite the drop in stock prices of “dot.com” companies e-commerce is rapidly becoming a staple of the business world. Indeed this may be why the prices dropped; perhaps the “pie-in-the-sky” valuations of e-commerce ventures were are consequence of the type surrounding the new industry. Now that this industry is more established and traditional companies are also venturing into e-commerce the stock prices are more commensurate with those of promising companies in other industries.
There are several forces that are driving the development of new e-commerce Web sites. As in the physical world of commerce there are three key players.
The Driving Forces for E-Commerce
Market and Economic Pressures
1. Strong competition: Now competitions the part of any business and companies are implementing new techniques every day to bear their competitors. E-Commerce is one of the tools of recent days, which is adopted by the companies.
2. Global Economy: In Present Scenario world becomes a global village and there are standard patters in market for business, so every country must follow these norms. There is huge gap between the growth rate of developed and developing nation, so more and more developed nations are investing in every part of world. E-Commerce is the need of such a scenario.
3. Extremely Low Labor Cost in Some Countries: Now this the common feature of business that companies are having manufacturing units in one are of the world and the same products is marketed in other part of the world. Definitely some medium is required to maintain it and e commerce is providing such medium.
4. Frequent Changes in Market demands: As we discussed above that the age of techolnology so any change which takes place in part of the world, rapidly reflects every where so e-commerce it the tool which is necessary to sustain in present fast changing world.
5. Increase Expectation of Consumers: The expectation of consumers about quality and services are very high, so it works like driving force for e-commerce.
6. Awareness Among Consumers: Awareness Among Consumers: Now consumers are well aware. Internet, print media and electronic media keep update the consumers about new products and their rates.
Societal And Environmental Pressures
1. Government Regulations: Every country have its own rules and regulations but now a days almost every country have well defined cyber laws which provides a right environment for the e commerce.
2. Reductions in Government subsidies: Now world is very open, some countries provides lot of rebate in tax and in other forms to do business. But some other countries reducing the soaps for business. E-commerce provides the opportunity to take these challenges.
3. Rapid Political Changes: Whenever government changes n any country there are some changes in guidelines and polices towards the business. It is also work as driving force for the e-commerce.
Technological Pressures
Rapid Technological Changes: Technology is the factor, which provides e-commerce an opportunity to become and perfect solution for business.
New Technologies: New and secure technology available in the market, which provides an easy, cheap and secure platform for the e-commerce.
Information Overload: By using e-commerce we can easily efficiently manage information about the product and other business related things. This is a cheap and secure medium for managing important information.
Digital Convergence: The digital revolution has made it possible for digital devices to communicate with one another. The Internet's massive growth during the past decades- a creation of market forces- will continue. Steady increase in computer power and decreasing cost made navigation on the internet.
The speed at which the web has brought e-commerce to the average person is astounding. In August 1995, there were 18 million internet users in the U.S and Canada. By April 1999 that number had skyrocketed to 92 million of these 60 percent were online shoppers.
Consequently new e-commerce sites are being developed and launched very rapidly. Given the downturn in the stock market fortunes of many e-commerce companies in 2000, the casual observer might be prompted to wonder why business continue to feel that a web presence is vital.
Despite the drop in stock prices of “dot.com” companies e-commerce is rapidly becoming a staple of the business world. Indeed this may be why the prices dropped; perhaps the “pie-in-the-sky” valuations of e-commerce ventures were are consequence of the type surrounding the new industry. Now that this industry is more established and traditional companies are also venturing into e-commerce the stock prices are more commensurate with those of promising companies in other industries.
There are several forces that are driving the development of new e-commerce Web sites. As in the physical world of commerce there are three key players.
- BUSINESSES: Businesses want a piece of the pie. The number of people on the web and their demographic are impressive. The pie is still rapidly getting bigger. Also online consumers are not the only market available to web businesses. Increasingly businesses are using the web as a means to reduce the cost of conducting inter and intra company commerce. Inter- company e-commerce also known as B2B e-commerce reduces costs by avoiding middlemen. Intra-company e-commerce reduces costs by eliminating paperwork.
- CUSTOMERS: There are many benefits of e-commerce for customers. At the simplest level e-commerce makes the acquisition of goods and services much less burdensome in terms of time and effort. Customers also want privacy and security while benefiting from the advantages that the web provides.
- GOVERNMENT: Government entities are still trying to figure out how or whether to take an active role in governing the internet at all. One of the major issues with governance of the internet is that it’s a global entity and as such has no clear boundaries of jurisdiction.
The Driving Forces for E-Commerce
Market and Economic Pressures
1. Strong competition: Now competitions the part of any business and companies are implementing new techniques every day to bear their competitors. E-Commerce is one of the tools of recent days, which is adopted by the companies.
2. Global Economy: In Present Scenario world becomes a global village and there are standard patters in market for business, so every country must follow these norms. There is huge gap between the growth rate of developed and developing nation, so more and more developed nations are investing in every part of world. E-Commerce is the need of such a scenario.
3. Extremely Low Labor Cost in Some Countries: Now this the common feature of business that companies are having manufacturing units in one are of the world and the same products is marketed in other part of the world. Definitely some medium is required to maintain it and e commerce is providing such medium.
4. Frequent Changes in Market demands: As we discussed above that the age of techolnology so any change which takes place in part of the world, rapidly reflects every where so e-commerce it the tool which is necessary to sustain in present fast changing world.
5. Increase Expectation of Consumers: The expectation of consumers about quality and services are very high, so it works like driving force for e-commerce.
6. Awareness Among Consumers: Awareness Among Consumers: Now consumers are well aware. Internet, print media and electronic media keep update the consumers about new products and their rates.
Societal And Environmental Pressures
1. Government Regulations: Every country have its own rules and regulations but now a days almost every country have well defined cyber laws which provides a right environment for the e commerce.
2. Reductions in Government subsidies: Now world is very open, some countries provides lot of rebate in tax and in other forms to do business. But some other countries reducing the soaps for business. E-commerce provides the opportunity to take these challenges.
3. Rapid Political Changes: Whenever government changes n any country there are some changes in guidelines and polices towards the business. It is also work as driving force for the e-commerce.
Technological Pressures
Rapid Technological Changes: Technology is the factor, which provides e-commerce an opportunity to become and perfect solution for business.
New Technologies: New and secure technology available in the market, which provides an easy, cheap and secure platform for the e-commerce.
Information Overload: By using e-commerce we can easily efficiently manage information about the product and other business related things. This is a cheap and secure medium for managing important information.
Digital Convergence: The digital revolution has made it possible for digital devices to communicate with one another. The Internet's massive growth during the past decades- a creation of market forces- will continue. Steady increase in computer power and decreasing cost made navigation on the internet.
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